BAKU, Azerbaijan, November 30
By Tamilla Mammadova – Trend:
Main objective of the National Bank of Georgia (NBG) is to achieve price stability in the medium term, the NBG told Trend.
According to the bank, the stable inflation level will continue over the long term.
"Main instrument of NBG to control inflation is policy rate. In order to meet its objectives NBG will use all instruments available including interventions in the Foreign Exchange (FX) market," said the bank.
As the bank noted, the latest inflation number is published for October which stands at 6.9 percent.
"We project that in November inflation number will be around the same level as in October," said the NBG.
According to the NBG, following the depreciation of the nominal effective exchange rate and amplified inflation expectations, in September, the National Bank of Georgia started the monetary policy tightening. Along with one-off factors, overshooting the target was caused by the increased pass-through from the nominal exchange rate depreciation to inflation in recent periods.
"The policy tightening is expected to continue until the pressure from exchange rate recedes," said the bank.
According to the NBG’s forecast, other things equal, the inflation will remain above the target during this year, will start to decline from March 2020 and stay close to the target in the medium term.
As of end September, 2019 total assets of NBG equaled 14.1 billion lari ($4.7 billion), the bank noted.
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